tv Bloomberg Daybreak Europe Bloomberg February 13, 2020 1:00am-2:01am EST
>> good morning from bloomberg's european headquarters in the city of london. this is bloomberg daybreak: europe and these are today's top stories. inpike in coronavirus cases china after the message for diagnosis is broadened. two top officials at the center of the outbreak are replaced. and a big day for results. credit suisse, barclays,, bank and nestle are among the european corporate's reporting numbers this morning.
♪ welcome to daybreak european or let's get straight to the credit suisse numbers just hitting right now. 1.20 one billion swiss francs, fourth-quarter net income at 852 million swiss francs, a miss on the estimate 934. fourth-quarter net revenue, six point 19 billion swiss francs. the estimate was 5.56, so it is a beat on fourth-quarter net revenue, a miss on fourth-quarter net income, and the full year dividend per share is missing estimates as well. the context here is this is the final results presentation by the former ceo. a spying scandal at the bank that started back in september came to a head last week with a board room bottle that saw him saw the chairman
looking to stay on until april 2021, and of course, his replacement will be presenting results alongside him today. he's leaving just as the strategy was starting to bear fruit. netysts were looking for income for the quarter to more than triple to cap the most profitable year since he took over in mid-2015. of course, the return on casual equity is going to be key as well. we've got more headlines coming through. fourth-quarter global market pretax at 48 million swiss francs. mid 2015,ng over in he slashed costs, turnaround the troubled trading business, pivoted the firm to wealth management, so today, there will be a lot of attention to the legacy he leaves behind because this will also be his opportunity if he decides to, to
talk about the circumstances of his departure. says weay, the new ceo will adhere to the course set by the board because that will be another question from investors, how the strategy plays out, and if those big investors who initially back tim will carry on board with the group strategy with the new head. getting to comment bank because we have more earnings coming through as well,, bank is targeting 2020 underlying revenue at least at the 2019 level. that is the redhead headline coming through. the fourth-quarter loss comes in at 50 million euros. the estimate was for a loss of 350 million euros. it also is hoping to keep its ratio at the 2019 level. the ceo saying his more optimistic about the return expectation, so those are some of the key lines coming through
their. in terms of fourth-quarter revenue as well, that is beating the high estimate. profitquarter operating also beating 250 billion euros. those are the breaking headlines we have from the big banks reporting today deep in earnings season. up fortis inticker group posting a first-quarter loss. the elevator unit decision is imminent. that is the red headline there, guidance. its 2019 the elevated unit decision being imminent. let's get to the broad market. it is really a tone of caution you are seeing across assets today as we find out overnight from china that a new methodology means optimism the
market was having around perhaps stabilization cases in china cannot really come to bear not yet. not big losses, but a lot of the indices are in the red. we solve records for the s&p 500. the dow yesterday and the u.s., as well.uities closing the 10-year yield down for basis points but still around that 160 handle. you have seen commodity currencies come under pressure. again, that broad risk of tone. 2017 low. we hit the you've got deutsche bank basically saying that it expects a slight contraction for germany in the fourth quarter. oil, we have seen that quite firm this week. it has been pushed around a
little bit by coronavirus headlines, but we are just about in the green. on our top story in the toppingrus death toll 1300, the number has surged more than 13,000. this after china revised its method for diagnosing the illness, dashing hopes the epidemic was showing signs of easing. two top chinese officials at the center of the outbreak have then replaced. elsewhere, japan confirmed 44 more cases on a quarantined cruise ship, bringing the total infected on board to 218. hong kong extended the closure of schools until at least march 16 and the wireless industry scrapped its biggest annual showcase in barcelona. for more, anchor tom mackenzie joins us from beijing. give us the details of this change in methodology. headsis a lot to get our around today in terms of the news flow on the coronavirus,
but the most salient point is the fact that they have changed this methodology, so they are not just looking at people who have been tested with lab tests. they are now looking at people who have gone through ct imaging scans as well showing signs of pneumonia and they have added those cases to the cases tested with these lab tests, so now you have seen a 45% increase. 15,000 additional infections, and of course, the number of deaths as well has increased, above 1003 hundred globally. so the numbers are moving up as a result of this change in methodology significantly, of course. medical experts say this is a good thing because it makes it slightly easier to get to grips with the extent of the virus and the spread and it is a more realistic interpretation of events, but it raises questions about the uncertainty around the data and the uncertainty about how chinese officials and medical staff are translating theirnd passing on to foreign counterparts as well.
in terms of how it is being digested, and china, it is likely to increase the anger around the handling of the issue and you see the government trying to preempt some of that by removing two senior officials. on the economic front, you have had the senior leadership saying they want to see a more flexible monetary policy emphasizing additional fiscal support and also foreign invested projects. they want to see those accelerated. it is underscoring that the senior leadership in china want to get the economy back into second gear or third gear as we get into the latter stages of this closure kindly quarantined measures. central leadership want to see that stimulus enacted. reducing not bond issuance at the local government level as well, but clearly, the numbers will keep increasing. if they can get the economy back in gear is primarily in focus. nejra: tom mackenzie,
our markets editor for china, thank you. we are seeing a broad risk off tone across markets today, but will investors come around to the view because we have seen so much resilience in equity arkets that yet -- there is difference in methodology, that does not mean we have reached an inflection point in cases, but perhaps this is good because we are seeing a more realistic picture. >> that is certainly true. we probably never had a really good handle on how to measure and how it has been measured and if the numbers we were looking at were realistic ones. the problem for markets is will this be a sharp downward adjustment to first quarter and activity data and, hence, a sharp rebound in the second quarter? the question we have now is will this drag on a lot longer, given that we still don't really have a good handle? what markets will look at is a
peak in new cases. we thought we had that over the the couple of days, but news this morning shows that is no longer the case. the question is how much activity will be impacted with it in the open and we do not really have a good answer to that. economic surprises have been quite positive. >> it is interesting you say that because earlier this week, i was talking about ubs calling it equity exceptionalism because the risk has been portrayed differently in other markets. chartok at a longer-term of s&p 500 versus commodities, there is that gap, and i wonder -- does the s&p 500 price down to match commodities, or actually, you pointed out lower commodity prices mean lower
rates, and that can be supportive of equities, so what is the outcome? see.finitely, we shall obviously, you are important -- you are pointing to very important factors we have seen. equities so well supported. economic surprises always seem to be good support. earnings season we have talked about already. europe in particular seems to finally have swung back to a positive earnings growth scenario, which is incredibly helpful to the overall earnings story. last year was so much based on earnings expansion. the economic picture was a lot more supportive. the main question is will this remain in place? this is why it is interesting we hear china talking about extra stimulus. they are very well aware of what is needed to keep the story on track.
portfolio isur under review as a result of coronavirus? >> there's obviously specific stories in specific sectors that will be impacted. the travel sector is probably the closest to be reviewed because the stories coming from you havee ship, so very isolated and very specific cases that will suffer a lot more. other than that, we are looking at the overall picture. it is not just the coronavirus. we still have the u.s. election coming up and other events that will shape the u.s. economic picture this year. as such, we are trying to make sure the overall risk purchasing picture is based on fundamentals. and you have specific stock or bond stories we are viewing currently. >> if china steps in to protect growth at all cost and deleveraging takes a bit of a backseat, will markets take that positively? the stimulus really has to be put in context
when and how quickly they can reopen manufacturing capabilities. that we have estimated is the main question because that will .ave a real impact the longer this last it will have repercussions for other countries as well. that is the core ingredient. , you cannnot reopen stabilize but not counteract the impact. let's get to the first word news. t-mobile's parent company is looking to renegotiate its takeover of sprint. wants a lower price because sprint shares have slid since the deal was proposed in 2018. the your has slumped to the lowest level since 2017 amid concern germany could be headed for recession. also weighing on the common currency are chancellor angela merkel's accession plans and a dovish commercial bank.
traders are dialing up expectations the ecb may need to lower rates even further to counter fallout from the coronavirus. in the u.k., prime minister boris is set to reshuffle his cabinet and plans to promote a number of women to a number of positions. the number of women is not expected to increase, and that is amid speculation and number of high-profile women could be fired. coming up, can the world's largest food company achieve growth above 4% this year? nestle result -- leak -- nestle reports results just after 7:00 a.m. london time. and bp has and a vicious agenda to deal with the climate emergency. our exclusive interview next. this is bloomberg. ♪
daybreak: europe. more breaking news as we are deep and earnings season coming through from nestle. full-year organic sales growth comes through at 3.5%, a touch lighter than the estimate which was 3.6 percent. twofull-year dividend is at swiss francs 70 per share. those are the headlines coming through from nestle at the moment. we will bring you more headlines as we get them. we will also speak exclusively to mark schneider, the ceo of nestle. pressure's key oil producers -- russia's key oil producers, but as the market waits on russia to clarify its position, the effects of the coronavirus continue to affect markets. the benchmark december to december spread has settled, the first time the spot price is lower than its future price since august. staying with oil, bp's new ceo
come -- tolan to combat climate change. tohas committed bp eliminating all emissions from its own operation by 2050 but says he does not have detailed near-term targets. >> and a lot of people spend a lot of time trying to debate what might happen and what will happen and what is going to happen to price. >> that's why i have a job. >> it is something i do not try to spend a huge amount of time on to be honest because the reality is the coronavirus is a great example. we just don't know what the future holds. we don't control the price. what we do control is our cost base. what we do control is our breakeven and that is what we are focused on very, very much. bp is very fortunate to be in a place where we are coming into a period of time where we have a lot of projects coming online. online, 12 more to
go. we are entering a period where we will have access free cash flows, and what that means is that our breakeven will continue to go down over the coming years, so that is what i'm very focused on, making sure we build an increasingly resilient business. for all the reasons we have talked about in the beginning, the future is unpredictable. we do control our cost base, and that is what we are focused on. shell reallyly -- modeled their plan on $60 oil, and it did not really get there. what did you model your plan on? >> again, anybody trying to predict the price of oil next week and next month, let alone in 30 years, is on a bit of a fool seven. what i will tell you is what we are doing, and over the next couple of years -- in fact, in 2021, we will drive the breakeven of the business down
to $40. we believe that is a resilient price that enables us to withstand a variety of environments, so we run all sorts of scenarios. we run $60, $70 scenarios. we run $50 scenarios. we may run higher scenarios. nobody quite knows what the future does look like. what we are trying to test is how it looks in a range of scenarios and how resilient is the portfolio. >> all this ties into the plan that you unveiled. what you drove home very hard it is the q&a was hearing, the transition, the dividend. there is just a lot of skepticism among investors that you can do all three at the same time. >> i understand, and i think we have been listening to our shareholders. i said earlier, people want us to get our gearing back into range, which we can and will do.
people want to know that the dividend is protected and secure, and people want us to invest in and partake in the energy transition. depending on what investor you are talking about and depending where you are in the world, the order of those priorities may change. us is -- can we deliver all three, and i fundamentally believe that we can. i think there is a sense out there that investing in the energy transition is somehow adding more and more and more capital to the system. what i said earlier today is that we are absolutely committed to capital discipline. our current range is $15 billion to $17 billion. i made it very clear we do not need to see that number arise, and when we come back with our strategic update in september, that will be the capital guidance for the company in the years ahead.
nejra: let's talk more about the corporate impact from the coronavirus. before we get to the coronavirus, i want to talk about oil majors. are they appealing to you in anyway, either as a result of dividends, or maybe by picking the best in class when it comes to an esg mandate? >> no, i think it is very interesting what he just said, and i think it has been a very bold statement, and i think asking for more details at this stage, simply they cannot have because there are so many moving parts in the equation that it's quite difficult. what we need them to be is part of the journey and understanding what their proposition is in the context of a dramatically changing imaging mix in the future and there will be at a lot of areas that they can indeed focus on, which is, obviously, the asset mix. carbon capture will play a big role, so there's lots of areas they can do.
at the end of the day, i believe it is important that there are bold targets and that we can be part of the journey helping them to get jointly to that goal. we then canext, assess the other elements that dividends do and look very interesting. to see that this is done in the right context with the strategy, not just for the sake of the dividend, but it is important in the context of a long-term sustainable business model. >> i wrote nestle at the top of the hour and we just got a comment saying that it is too early to quantify the impact of the coronavirus outbreak. that an earnings season that was maybe supposed to provide important equities may not anymore? >> as we have highlighted already in europe in particular,
we might have seen after quite a long drought in terms of earnings a return to positive earnings growth, which is amazing. going forward, the same as what we have sent about the economic impact might impact earnings in the first and second quarters, and i think in particular for a company like nestle is the potential impact on supply chains and any disruption from there. coming up, fears that germany could be headed for a session contribute to the euros slumping to a two-year low. we talk about europe's growth engine next. this is bloomberg. ♪
1.15 for the your by the year in. should that be put aside for now? >> at least it should be put on hold. we are seeing weakness in 2019,cturing throughout which has been weighing on the your in comparison to the u.s. with the coronavirus, we have to assume there have to be further disruptions to the global supply chain and hence the effectiveness of the global manufacturing sector might continue. it will all come down to the lasting impact of the coronavirus and if the early signs of the potential stabilization in the manufacturing sector actually can be sustained and potentially improved. there's too many if's at this point to say where are we heading. talk: coming up, we will earnings with the ceo of building or.
>> good morning from european headquarters -- bloomberg european had court is in the city of london. a spike coronavirus cases in china after the method of diagnosis is broadened. two top officials at the center of the outbreak are replaced. pairs gains after russia's oil giants voice support for extending cuts into the second quarter, and a new era begins. credit suisse's new ceo says he will adhere to the course set by the board after the group misses the mark on fourth-quarter net income.
welcome to daybreak europe. our top story on the coronavirus death toll topping 1300 patel it is. the number of infections have surged by more than 15,000. total confirmed cases nearing 60,000 after china revised its method for diagnosing the illness, dashing hopes the epidemic was showing signs of easing. our chief asia correspondent joins us from hong kong. what do we need to know about the change in methodology and the impact it is having? stephen: the data we've been looking at is you have to look at the number of deaths, of course, but also look at the number of confirmed cases. yes, they have spiked upward quite sharply because of this new categorization, the new methodology with which to determine who is a coronavirus confirmed case or not. that jumped up, as you just
mentioned, quite significantly, but that may be simply readjusting the base upwards, right? what we need to look at is going forward, is the pace of confirmed cases going to increase more or less or plateau like it has done over the last several days? we have seen on average a little bit more than 2000 each day. aside from the big jump overnight. that is better than in previous weeks where we saw upwards of 3000 cases per day. keep in mind, the death toll has risen quite sharply as well overnight, but again, and a lot of that wasn't the new categorization, and that is a lagging indicator, deaths. epidemiologists we have spoken usually takeaths about three weeks. what we have to look at are the number of new cases, and that will really be determined over the next couple of days, once we have this new base established.
much tohank you so stephen engle, our chief asia correspondent and hong kong. reaction to this news overnight is a tone of caution. we had three days of gains for equities, global equities hitting a record yesterday. the s&p and the dow in the u.s. hitting fresh records, but today, you are seeing some red on the screen. you are seeing u.s. and european futures on the back foot. ubs had the idea of equity exceptionalism at the start of the week whereby equities cap gaining, but the 10-year treasury yield down 30 basis points so far this year. seeing sort of a consensus view across asset classes. board, you arehe seeing strength in the yen, so strength in the yen meanwhile weakness in commodity currencies as they you want is weakening as well. the euro-yen's to hitting a 2017 low. we've got the industrial
production data causing concern, and you have deutsche bank expecting a slight contraction for germany in the quote -- in the fourth quarter as the coronavirus is expected to exacerbate an industrial flood. then you have called changing on the euros as well. credit asset called downgrading its forecast on wednesday following similar moves by jp morgan. wti absolutely flat right now. it has been pushed around a little bit by coronavirus headlines, but interestingly, oil has been fairly strong this week. as i say, today, that risk on tone we have seen so far all this week has changed. that tone has shifted. the question you have to ask yourself now actually is -- will risk comeback back on the table is markets think at least we are seeing a little bit more of a realistic picture in terms of the infection rate for coronavirus. we also are, of course, in earnings season and keeping a close eye on the earnings coming through and credit suisse
dropping at the top of the hour. the background is that last week, we saw the ceo step down after a board room battle following a month long spy scandal plaguing the bank -- months-long spy scandal plaguing the bank. a revenue improving during 2019 after a challenging first quarter. you can see all this, by the way, on a fantastic blog on the bloomberg. the outgoing ceo saying the bank had a clear strategy. we have heard from the new ceo that we willl continue with the strategy of the board has set out. more on credit suisse later. inger reportingf fourth-quarter sales that narrowly missed estimates. joining us is the ceo. great to have you with us. what happened in these numbers? >> good morning. first of all, a quick correction, we met all of our guidance. we beat the revenue.
we are up 6% last year. we were 6% of the prior year. we continue our growth curve. ebit. by 60%.d for therted cash flow first time is positive at 57 million, and our net profit is positive at 24 million for the first time since 2016. the way we see it, our numbers hit the mark. i guess the one glitch you refer to, which is accurate, is that our orders were more or less flat from the prior year and we think that will recover in the coming year. we know where that came from. it is a major project, so we are very pleased with results. will: so you do think you see a recovery in orders in the coming year. how are the cost cutting coming along? >> we have actually reduced g&a
by 32 basis points in the coming year. we will reduce by a further 50 basis points in the coming year. margin is not moving very much. that's the downside. we have a program to rectify that, and we are confident that our strategy, like your previous story there, is very clear, and we will deliver on the 5% ebit that we promised the market. nejra: we are asking all our ceo's through this earnings season about the potential impact of coronavirus. from what i understand, you have very little, if any, exposure to china. does that feel you -- does that fill you with a sense of relief right now and put any exposure you have to china on hold? concerned, obviously, like everyone else is, but you are right, our business is focused on europe, the middle east, and north america. we have some business in china. that business is really us
importing goods into china. we receive nothing out of china, and therefore, we continue to move our business forward. we have restricted travel to china or from china, but you are quite correct -- we are not impacted as are many other companies that have a global logistics chain. orra: what about the second third order effects if the outbreak gets worse and we see a material impact on chinese global growth that feeds through to europe and your business there? is that something that you are in anyway thinking about right now, or is it too early to assess? >> i would say it is too early to assess because we typically are a late cycle company. when things develop, we see them coming. we will be affected but only later. in that sense, we have a lot more warning than other companies. three major industries -- oil and gas, petrochemicals, utilities -- are very much intact and robust. have: one area that we
gotten a little bit more clarity on is brexit. do you see any impact on the business now that there is some clarity and those trade negotiations with the eu are beginning, although we are already starting to see some stumbling blocks? >> again, it is the beauty of our business. we conduct our business inside national borders. we are in the u.k., we have been there a long time. if there are borders, even if they are artificial, they do not affect us because we are inside those borders. our business in the u.k. is doing very well. customers have strong cash flows that they invest, and of course, very muche business around hinckley point going forward. nejra: when do you see the revenues from the delayed hinckley plant nuclear project
and the u.k. -- when do you see them materializing? >> again, to be accurate, the project is not delayed. it's actually very much on track. what was delayed was our own order intake, which we had planned to take place in 2019. the flat order intake line has flowed over into 2020. an announcement from us in coming days. we have signed contracts and are making progress. i am relatively satisfied, though it has taken a little bit longer than we thought. so much for you joining us. let's get to today's morning call. markets have not seen the worst of the coronavirus impact according to blackstone's capital market strategist. u.s. 10-year yields may drop below 1% if the economic fallout grows according to van peterson, adding that one cannot own enough u.s. duration.
are you loading up on u.s. duration? >> not quite yet. it is clear that if the impact is much harsher than we expect right now, that would be the logical call to make, and it's very difficult because we have so much new data this morning from the coronavirus, but at the end of the day, i think what the market will be looking for but will determine on equities and the bond complex is wind new cases will be peaking. new cases will be peaking. that is when the market turns around because that is when you have a better idea on how the chinese can react and reopen markets in terms of the manufacturing capacity. with the news today, that is obviously out of the open, so there will be a lot more focus on the next couple of days where we are seeing a plateauing. even if we see a spike today, it is the new cases that matter most because it gives you an idea how the trajectory of the epidemic will unfold. at the moment, you have a
fairly neutral stance. are you looking to do risk or keep the risk level but add some protection buying gold? >> we are neutral in terms of risk budgeting or our equity example. is it'stion obviously not just the coronavirus. we have a base case we have seen in terms of our economic consumption. we are entering the final selection process for the diplomatic candidate and that will give us a lot more insight into what actually will be the big theme emerging around the u.s. and presidential candidacy, and that is something the market has not really focused on a lot. we are concerned tax increases have become quite popular over a large number of democratic candidates, and as such, that should be negative for equities, but for the time being, given there is no clear candidate yet, this has not really been put
into account, so there is a lot more to come. adding more risk i think would be premature at this stage. a story on the bloomberg that it is spurring detraction from investors. lots more to come on the markets on bloomberg daybreak: europe. earnings and the impact on coronavirus -- the impact of coronavirus. this is bloomberg. ♪
folio of shopping centers. joining us now, the ceo of unit about. welcome to the show. great to have you with us. we will get more to the numbers in a moment, but i first want to ask you about any potential impact of coronavirus on the business. i know it might be early to assess, but there's lines to be drawn between consumer spending, consumer behavior, and fewer movement of consumers around the globe. >> i think that is absolutely right. for us, it is early days. we have not seen any direct exposure. very limited, we only have one shopping center where we typically see a lot of chinese tourists in paris. we have not seen any major impact. it's very hard to identify. we are following it closely. the key element is of course that for us we have long lease contracts, so revenue visibility has presumably been longer than for companies that operate on a shorter duration, but again, the carry-on effects on the supply
chain, that will be a whole different kettle of fish. nejra: what are you sort of thinking of contingency measures to offset that? a ultimately, it will be function of working with tenants. it depends on where, if you will, it actually goes from here. hard to do many what if scenarios. absolutely. we were talking in the intro about this disposal of assets story. you have made rapid progress disposing of assets in the last couple of years. does your target remain, or are you considering extending it to bring leverage down as much as possible? >> last year, we announced we were going to do a total of 6 billion. that leaves us with 1.2 billion to go of the original plan. we have also identified a further 2 billion over the next few years. deleveraging continues to be an important focus for us at this
point. nejra: in the numbers today coming in better than expected, what are the reasons for that outcome? >> there's always going to be something. sales were very strong. some portion of our rental income is actually tied to tenant sales, so if tenant sales are better than expected, some of that will be reflected in the higher middle income. nejra: how would you characterize the retail picture at the moment? bloomberg intelligence has kind of characterize to you as shrugging off those retail woes. is that the picture as you see it? >> retail is undergoing fundamental changes. the impact of e-commerce is undeniable. we never said that would not be the case. sales.erformed by tenant we outperformed by 550 basis points. that is significant.
you can see for the right retail that offers people something more than just a place to buy stuff, the entertainment and experience component of it, it really attracts people. nejra: what about the project you have in south london? it appears to have stalled somewhat. >> the original point was a very large shopping center. the concept now in light of where we are in the british retail market in particular, the project requires redefinition. we are very excited about the location. we will definitely do a significant project. we have to do some redefinition. we have to talk with the municipality. it means housing, office, hotels, leisure, as well as retail, so i think considering the significant change in the project from what it was originally intended to be, we decided at this point should probably park it or if it until we have an agreement in alignment with all the stakeholders and we are looking forward to do that. nejra: how much confidence do you have in the u.k. now that it has left the eu?
>> we are not a proxy for the u.k. we are very much london focus. we have no other shopping centers other than london proper. believe thatly will always be the case. we are not quite as worried. obviously, the u.k. has made its decision. there will be some bumping is, i'm sure, but in the long-term, we continue to be very optimistic. would you consider starting to sell off stakes and retain the asset management rights? the old saga of you basically sell an asset, and institution investor will buy 100% rather than have an asset manager just manage it -- that is over. high-quality shopping managers experienced managers with skin in the game. investors are taking a significant amount of the equity and then the party who is managing it.
nejra: right to have you with us. thanks so much for joining us. credit suisse has reported a miss on fourth-quarter net income amid a changing of the guard at the top of the group. last friday, he was ousted from , citing and replaced deterioration of trust, reputation, and credibility among stakeholders as the reason behind the move, but he said in a statement today he is proud of what credit suisse achieved during his tenure. of course, we will keep an eye on the credit suisse numbers and anything more we hear. fourth-quarter revenue and
this is bloomberg daybreak: europe. i'm nejra cehic in london. here is what you need to know today. prime minister boris johnson is expected to reshuffle his cabinet. he is seeking to reshape his government and prepare the u.k. for life outside the european union. johnson'sul follows overwhelming electoral win, but media reports indicate the changes are likely limited. instead, the reshuffle will focus on promoting -- on demoting pro-eu ministers. how much importance does this cabinet reshuffle have for you and your strategy around the u.k.? >> nothing really. to us, it is most important to see what the early feedback is
from the upcoming negotiations. we do not have a free-trade detailst yet, so the will come and that is most important. i think we have already had an early taste of where the roadblocks might come from and we will watch carefully. positive onou still u.k. equities? >> very important it is not a blanket of grade. we have seen domestic stocks trading at such low valuations there is a real chance that the gap might narrow. in fact, we have seen already a bit of a rebalancing happening and i still think it is worth having a look on where you find real valuation. normally in the u.k. market, we believe that is a good way to place our money. not cuthe decision to
by the bank of england, is this something you will -- you think will be reassessed? >> we have to see what the governor will tell the market and if there will be a reassessment. it was quite a close call, so it will be interesting to see. if you look at what is going to happen in the u.k. this year, it will be a difficult balancing act for the bank of england. it's not just the fundamentals. this lots of politics that will influence how we have to look at the currency, potential inflation expectations and the economic growth picture. nejra: great to have you with us. thanks for joining us. coming up, we speak exclusively to barclays' ceo. you can see that interview just after 7:00 this morning london time. of course, this hour, we've had earnings from credit suisse, fourth-quarter revenue and pretax settlement expected. the chief executive delivering to executivesage
anna: good morning. welcome to bloomberg markets european open. i'm anna edwards alongside matt miller in berlin. matt: today the markets say bring on the earnings day luge. we've hosted -- or we've got a host of high profile interviews coming up. we have already hosted a number as well. coming up, we have mark schneider, but next we will hear from our conversation with the outgoing credit suisse ceo. european futures point to a mixed open. the cash trade is just over an hour away.
♪ matt: let's get straight to our interview with francine lacqua and the ceo of credit suisse. >> i feel like it is turning and producing better and better results. francine: what is your biggest regret? >> if things go well, it is always a regret to leave, but fundamentally, i have no major regrets. things,ig picture of the strategy has worked. francine: do you feel wronged by what happened last week?